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Wind giant Suzlon suffers 'disappointing' financial first-half
Indian wind turbine giant Suzlon admits it had a “disappointing” first half to its financial year but insists its “key metrics point in the right direction".
Revenues were 104.49bn rupees ($1.92bn), 11% up on the same stage last year.
But Suzlon – which is battling to sort out its debt situation – made a loss of 16.63bn rupees in the half year ending September, compared to a 1.28bn rupees profit at the same stage 12 months ago.
Suzlon’s order book stands at about 5.4GW, with new orders of 1.07GW signed during its second quarter.
Chairman Tulsi Tanti says: “The first half of 2012/13 has been disappointing for the Suzlon Group.
“Our performance was affected by macro-economic headwinds and policy uncertainties in some key markets, as well as by our internal challenges around liability management, and sub-optimal capital allocation to business operations."
Tanti adds: “Despite this, key metrics point in the right direction. We have continued to grow revenues year-on-year; our product offerings are highly competitive in the marketplace; our firm orderbook stands at an extremely robust $6.84 bn; and [German turbine subsidiary] REpower continues to maintain a solid growth trajectory.”
The Suzlon boss says the company has taken “concrete steps” to put its mid- to long-term performance on a sustainable basis.
The group recently announced it has begun talks with senior secured lenders under India’s CDR (corporate debt restructuring) mechanism.
“These steps will enhance our liquidity position and enable us to normalise our business operations and deliver on stakeholder commitments,” claims Tanti.
Kirti Vagadia, chief financial officer, says: “Allocation of cash towards addressing financial liabilities, combined with working capital constraints, acted as a significant limiter on our performance [in the half-year].
“Addressing this is now the central focus of our change agenda. We have launched several key initiatives – including Project Transformation – to bring down fixed costs, reduce working capital intensity, and continue our sale of non-critical assets as we right-size the business.”